AMBAC SUES BANK OF AMERICA FOR MASSIVE FRAUD: $16.7 billion

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flippinwacko

LoanSafe Member
Dec 30, 2008
524
1
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4 seasons Idago
Imagine that...When you read this article you will see that the "Master Servicer" expressly caused AMBAC, the "insurer" there was no subrogation recourse!

The poop is hitting the fan now!
I just wonder how many lawsuits are going to be out there soon?

http://livinglies.wordpress.com/2010/09/30/ambac-sues-bank-of-america-for-massive-fraud-16-7-billion/


AMBAC is one of the insurers of loan portfolios, like AIG. The insurance paid off when the Master Servicer declared the portfolio had “failed,†based upon standards that were set by the Master Servicer and Underwriter. The insurer had waived its right to challenge that assessment and waived subrogation. It is through this mechanism that many loans that are still performing, many loans that are in current foreclosure proceedings, and many loans that were foreclosed were either paid off or the delinquency was paid by the carrier. In the contract of insurance the insurer expressly waives any right of subrogation. Thus the receiver of the proceeds of insurance gets to keep the money and the portfolio too which was largely performing.http://livinglies.wordpress.com/2010/09/30/ambac-sues-bank-of-america-for-massive-fraud-16-7-billion/